TurboTax vs TaxAct vs FreeTaxUSA: Getting Different Standard Deduction Amounts?

The standard deduction difference is likely because FreeTaxUSA might have you set up as Single filing status ($13,850 for 2023), while TurboTax and TaxAct have you set as Married Filing Jointly ($27,700 for 2023) or Head of Household ($20,800 for 2023). Double-check your filing status in each software. The fact that TurboTax and TaxAct match each other suggests they have the correct information. The standard deduction is automatically calculated based on your filing status, age, and whether you can be claimed as a dependent. For your state return differences, those calculations can vary slightly between software packages because each one might handle certain state-specific credits or deductions differently. I'd recommend going through the state section carefully in FreeTaxUSA to make sure you haven't missed answering any questions that the other software might have auto-filled.

After reading about your situation, I wanted to share my experience with FreeTaxUSA. I was in almost the same boat last year - comparing different tax software options to save money. I found that FreeTaxUSA was actually great for my situation (W-2 and some investment income), but I ran into similar confusions with some of the settings. What really helped me was using https://taxr.ai to analyze my tax documents before inputting them. The service scanned my tax forms and told me exactly what my filing status should be, what deductions I qualified for, and even highlighted errors in my W-2 that I hadn't noticed. Saved me from making a mistake that would have cost me over $1,500 in missed deductions! The interface breaks down everything in plain language and points out potential issues before you even start with any tax software. Might be worth checking out to confirm your filing status and make sure you're not missing anything.

I tried taxr.ai after seeing it mentioned here, and it's actually legit! I was having a similar issue with different results between tax software. The service immediately flagged that I had entered my 1099-NEC income incorrectly in one of the programs, which explained the $1,200 difference in my returns. What I found especially helpful was how it explained exactly why I qualified for Head of Household status. I had been filing as Single for years not realizing I could have been saving money with the correct status! The explanation was super clear about which deductions applied to my situation specifically - way more straightforward than trying to decipher IRS publications. This service saved me from leaving money on the table and gave me confidence to go with FreeTaxUSA (and pocket the savings from not using the expensive options).

Jumping in with another recommendation that helped me with a similar tax software dilemma. After trying multiple software options like you did and getting different results, I couldn't get through to the IRS to verify which was correct. I discovered a service called Claimyr (https://claimyr.com) that got me connected to an actual IRS representative in about 15 minutes instead of waiting on hold for hours. The IRS agent was able to walk me through exactly why my standard deduction amounts varied (turned out to be a filing status issue like others mentioned) and confirmed which software had it right. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was pleasantly surprised since I'd basically given up on getting through to anyone at the IRS during tax season. Might be worth trying if you're still uncertain about which software is calculating things correctly.

I was totally wrong about Claimyr. I tried it yesterday after being skeptical (I was the one calling BS). Had been trying to reach the IRS for 3 weeks about a similar standard deduction question. The service had me talking to an actual IRS agent in 22 minutes while I just went about my day. The agent confirmed that my filing status was affecting my standard deduction calculation - exactly the issue others mentioned here. In my case, TurboTax had incorrectly determined I could claim Head of Household when I actually needed to file as Single. The agent walked me through the requirements and saved me from potentially getting audited. Can't believe I wasted so many hours on hold in previous years when this option existed. Just wanted to come back and correct myself.

The difference might also be related to how the software handles dependents. When I used multiple tax programs last year, I noticed FreeTaxUSA requires you to manually confirm dependent information in more places than TurboTax does. Double check if you entered dependent information correctly in all programs. Also, sometimes the preview screens show different information before you complete all sections. Make sure you've gone through all the questionnaires in each software before comparing final numbers. If the federal refunds match now but state doesn't, focus on state-specific credits. Each state has different credits available and each software might present them differently or calculate eligibility differently.

I've used all three of these tax programs and found that TurboTax and TaxAct tend to be more user-friendly but FreeTaxUSA is definitely the best value. Once you figure out the interface quirks, it's just as accurate. My advice: after you've decided on FreeTaxUSA, go through the final review section really carefully. It has a good error checker that might catch anything you missed. Also download PDF copies of your returns from all three software programs and compare them side by side - sometimes the differences are in how things are displayed rather than actual calculation differences.

I went through something very similar last year and ended up with FreeTaxUSA after comparing it with TurboTax and H&R Block. The filing status confusion is super common - I had myself listed as Single in one program and Head of Household in another without realizing it. One thing that really helped me was calling the IRS's automated phone line (1-800-829-1040) and using their Interactive Tax Assistant tool online to confirm my filing status before finalizing anything. Since you're a single parent, Head of Household is almost certainly correct if your child lived with you for more than half the year. For the state return differences, I found that FreeTaxUSA sometimes picks up on local tax credits that the bigger software companies miss or calculate differently. That $78 difference might actually be in your favor! I'd trust the software that asks more detailed questions about your specific situation. The $100 savings with FreeTaxUSA is definitely worth it if you've got the federal numbers matching now. Just make sure to use their review feature before filing - it's pretty thorough at catching any remaining discrepancies.

I've been through this exact same frustration! The standard deduction discrepancy you're seeing is almost certainly due to filing status differences between the programs. Since TurboTax and TaxAct both show $20,800, that's the Head of Household standard deduction for 2023, while FreeTaxUSA's $13,850 is the Single filer amount. As a single parent, Head of Household is likely the correct status for you if your child lived with you for more than half the year and you paid more than half the household expenses. Double-check this setting in FreeTaxUSA - it's easy to miss during initial setup. For the state return differences, don't stress too much if it's only $78 off now. State calculations can vary between software due to how they handle local taxes, credits, and deductions. FreeTaxUSA often asks more detailed location-specific questions, which might actually make their calculation more accurate. Given that your federal returns now match and you're saving $100, I'd say go with FreeTaxUSA. Just make sure to use their final review feature before filing - it's pretty good at catching any remaining issues. The interface might be clunkier, but the savings are worth it for straightforward returns like yours.